Russia's Rusal loses suit against Rio Tinto over alumina refinery, can appeal (updated)

Alumina

02/02/2024 11:57

(Adds Rio Tinto comment)
       LONDON, Feb 2 (Reuters) - Russian aluminium producer
Rusal  0486.HK  has lost a lawsuit against global miner Rio
Tinto  RIO.AX  that sought to win back access to its 20% share
of the alumina produced at a jointly owned refiner in
Queensland, an Australian Federal Court filing showed on Friday.
    Australia responded to Russia's 2022 invasion of Ukraine
with wide-ranging sanctions, including a ban on exports of the
aluminium raw material to Russia.
    Shortly after the ban was imposed in March 2022, Rio Tinto
took sole control of Queensland Alumina Ltd (QAL), sidelining
Rusal and cutting its access to the refinery's output. Rio owns
80% of the refinery and Rusal the remaining 20%.     
    "Rusal is disappointed in the outcome and is considering the
court's decision," the company said in an emailed comment,
adding that it had 28 days to file an appeal.
    "It is necessary to emphasise that this decision does not
deprive Rusal of the share ownership in the asset. It also does
not affect current Rusal operations worldwide," it added.    
    In the suit, Rusal's Australian unit, Alumina and Bauxite
Company (ABC), was seeking to restore its rights at QAL.
    "Rio Tinto and QAL plan to continue to operate on this basis
for as long as the sanctions continue," a Rio's spokesperson
said after acknowledging the court decision.
    Australia's alumina export ban and suspended operations of a
refinery in Ukraine prompted Rusal to seek more alumina in China
and other countries to ensure adequate supply to its Siberian
aluminium smelters in 2022.
    In 2023 it bought a 30% stake in a Chinese alumina refinery
to support the feed coming from its alumina assets in Russia,
Ireland, Jamaica and Guinea.    


 (Reporting by Polina Devitt
Additional reporting by Clara Denina  Editing by Mark Potter and
David Goodman
)
 ((polina.devitt@thomsonreuters.com; Reuters Messaging:
polina.devitt.thomsonreuters.com@reuters.net))